Klöckner Pentaplast: Restructuring to Reduce Debt by 1.3 Billion Euros

Klöckner Pentaplast, an international manufacturer of packaging and specialty film solutions, has entered into a Restructuring Support Agreement (RSA) with a majority of its financial partners. The goal is the comprehensive realignment of the company's capital structure, which is intended to reduce interest-bearing liabilities by approximately 1.3 billion euros. With this, the company aims to strengthen its balance sheet and increase financial flexibility. Upon completion of the restructuring plan, the company's ownership structure will transfer to certain financial partners.

To implement the plan, Klöckner Pentaplast and selected subsidiaries have initiated a voluntary, prepackaged Chapter 11 proceeding with the U.S. Bankruptcy Court for the Southern District of Texas. This procedure allows companies a court-supervised reorganization while continuing business operations.

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According to the company, ongoing business operations at all worldwide locations are to continue without interruption. For the duration of the proceedings, Klöckner Pentaplast has received commitments from financial partners for 215 million euros in new Debtor-in-Possession (DIP) financing. These funds, supplemented by ongoing revenues, will finance business operations and meet existing obligations.

As part of the restructuring, Klöckner Pentaplast expects to fully pay all suppliers, service providers, and business partners. Corresponding motions to maintain operational business have been filed with the court.

Entities in numerous countries, including Germany, Spain, Great Britain, Italy, China, India, Brazil, and Canada, are not included in the U.S. proceedings.

Klöckner Pentaplast was founded in 1965, operates 27 plants in 16 countries, and employs over 5,000 people. The company supplies packaging and film solutions for the pharmaceutical, food, beverage, and card industries and will celebrate its 60th anniversary in 2025.

More information: www.kpfilms.com

Klöckner Pentaplast, London, UK